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September 29, 2017 at 8:52 am

Steps to Getting an Awesome Mortgage Deal

Mortgage loan agreement with keyWith lower unemployment rates and good job opportunities available today, many people are in an improved financial position to take a mortgage compared to the past few years. You can now get a home loan for as little as 3.5% interest over a 30-year period.

Before you join the growing number of people taking mortgages, here are some tips to help you get an excellent deal:

Evaluate Your Finances Before Viewing Houses

Most people take a mortgage in Sandy on a theory that their income will increase in time and make the monthly payments easier. It is always a smart idea to be frugal. Look at what you can afford on your current earnings. Learn to keep all your monthly debt payments below 36% of your monthly income.

Save Money For Your Down Payment

It is ideal to save up to 20% of the purchase price of your house and use it as a down payment. With this much of your home’s price in cash, you only need 80% financing. This will make your monthly mortgage payments more affordable and make you more appealing to lenders. You are also likely to get better interest rates with a 20% down payment.

Improve Your Credit Score

With a credit score below 720, a financial institution that is underwriting your mortgage will see you as a greater risk and assign you higher interest rates. To improve your score, pay your credit card balance in full and on time, and keep your balances to their limit. Improving your credit score may take time, but if you are consistent and patient, you will enjoy all the benefits when you take a mortgage.

Conduct a thorough research on your lending options before choosing a lender. You can work with a mortgage planner who will help you integrate the mortgage into your general financial picture. The planner will also assist you in getting all your paperwork in order.